Case study application of venture analysis: the integrated energy utility. Volume 1. Introduction and summary

Technical Report · Wed Nov 01 04:00:00 EST 1978

OSTI ID:5929720

Fein, E; Gordon, T J; King, R; Kropp, F G; Shuchman, H L; Stover, J; Hausz, W; Meyer, C

This study has combined a private venture analysis with a public-sector analysis for the integrated energy utility (IEU) concept. By combining public and private analyses, it becomes possible to define the role that government action can play in the innovation process. With positive public benefits expected, the government role becomes one of providing incentives to private innovators. The results of the private analysis indicate where government incentives can be most effective, in this case by removing the uncertainty involved with the IEU concept. Venture analysis can be a very useful tool for government planners, but it is essential that both private and public analysis be done. The public analysis indicates whether the government should be encouraging or restricting the innovation, and the private analysis indicates where government action can be most effective if, in fact, it is required. An individual analysis of one innovation cannot determine whether investment in that innovation will create greater or lesser benefits than investment in any other innovation. It can indicate, however, whether the returns from that innovation are expected to be higher or lower than the general rate of return to be expected from all innovations. Unfortunately, the small number of public-benefit studies done to date limits knowledge of the average rate of return on new innovations. As more public-benefit calculations are performed, however, this base of knowledge will expand and public rates of return may even be able to aid in ranking projects by priority for public investment.

• Research Organization: Futures Group, Glastonbury, CT (USA); General Electric Co., Santa Barbara, CA (USA)
• DOE Contract Number: AC01-77PE02686
• OSTI ID: 5929720
• Report Number(s): CONS-2686-T1(Vol.1); ON: DE83013451
• Country of Publication: United States
• Language: English

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